The Great Divergence

[--Pete]

Hi,

The information and views in the articles are certainly enlightning for me, and I think this Timothy Noah got pretty far in explaining the divergence, considering he used only correlations. However, there might be another factor: phantom wealth.

Wealth and income for the richest people is mostly 'virtual'. It's money created by money, by means of trading in stocks, shares, debts, and even more exotic financial constructions. While phantom money does have a relation to 'real' money (cash and commodities), the total value of it has far outgrown the things it once represented, for the past decaces. Since accumulation of phantom wealth mostly befalls those who already have the most, this would greatly contribute to the current divergence.

OK, I must have awoken in an alternate universe. I actually agree with Zenda on this.

--Pete